Many people enter the market thinking it’s the quickest way to wealth, but the first mistake they make is working without a specific plan. You find yourself buying and selling just because you heard a rumor or someone gave you advice. This alone can wipe out your account in just a few months. Greed also defeats many people; you might win a little on a trade and think it might continue to grow, but suddenly the market reverses, and all your profits disappear. Some people wait for a guaranteed 100% signal before they act, and with excessive waiting, opportunities pass them by. The more dangerous thing is that after you lose, you enter with a doubled amount to recover quickly, and this often drains your balance. Capital management is not a luxury; it is the only line of defense. If you don't set a fixed risk percentage for each trade, you will find your losses greater than any gains. Another part of the mistake is trying a new method every now and then without committing to a plan and giving it enough opportunity to determine if it’s effective or not. Constantly relying on the recommendations of others makes you just a follower without vision or experience, and as soon as circumstances change, you find yourself lost and unable to make a decision. If you intend to build a future in trading, you must have a written plan, a clear risk percentage, a consistent method, and personal analysis that develops over time. Only then will you be able to protect your money and trade with confidence.
